The Integration of Renewables in Continuous Intraday Markets for Electricity

This paper proposes an analytical model to explain how the uncertain feed-in from renewable energy sources shapes continuous intraday markets for electricity. The basic idea of the model is to use the day-ahead uniform-price auction as a reference framework to illustrate how forecast errors are balanced in the intraday market. The model is used to give insights into the price-setting decision of market participants, to explain prices from the German electricity market and to show some determinants of integration costs.